Tullow Oil back in profit as revenue slides 34pc
Oil and exploration firm Tullow Oil is back in the black after the company posted an after tax profit of $30m for the first six months of the year.
Revenue at the company sled by 34pc in the period down to $541m as its gross profit was almost cut in half to $183m.
Tullow said the dropoff in revenue was largely due to lower commodity prices and reduced production in its Jubilee oil field, which is subject of an insurance claim.
The company said the drop in revenue was setoff in part by lower costs and write-offs.
Net debt at the end of June stood at $4.7bn with free cash of $1bn.
Tullow's TEN Project is on course to deliver its first oil in August, which will raise the firm's production by 50pc and allow it to begin deleveraging.
Tullow chief executive Aidan Heavey said the TEN Project will be "transformational" for the company.
"This project has remained on schedule and on budget since the day the plan of development was signed and demonstrates our ability to deliver complex projects of this nature.
"The benefits of last year’s cost-cutting programme are evident in the financial results, the significant TEN capital expenditure is largely behind us and we have also made good progress on the Jubilee Turret Project.
"Tullow is therefore well placed to move forward with a restructured and more efficient business that can deliver growth from its portfolio of high quality, low cost producing, development and exploration assets," he said.